Soyabean may trade 3894-3984 range, gains at 3950
Commodity Online | May 27 2016
UPDATED 14:38:54 IST

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Soyabean on NCDEX settled up by 1.36% at 3950 on supply concerns from Argentina, the world's third biggest bean producer, and on improved demand. Flooding in Argentina has cut into the country's expected soybean output by 4 million to 8 million tons, even as higher-than-expected yields in dryer areas offset some of the losses.

In April, there was flooding in key farm areas in the world's third-largest bean grower damaged soybeans crop. Bean prices were also supported by lower supply in domestic market as farmers are set to reduce the area given over to soybean by 10% this year of lower prices and mulling to switch to pulses. Around 2 to 4 % area in Maharashtra, Rajasthan and MP under soybean may shift to other lucrative crops as soybean price is ruling 10 % lower in comparison to last year. Guar and castor farmers too would prefer to shift some area to other cash crop due to lower price.

Indian farmers are set to reduce the area given over to soybeans by up to 10 percent this year in response to falling prices, pushing up likely imports of edible oils such as palm oil and soyoil. Soybean is the main summer-sown oilseed crop for the world's biggest importer of edible oil, but prices have dropped 10 percent in the past two years, while the prices of pulses such as red gram have nearly tripled over the same period. At the Indore spot market in top producer MP, soybean gained  23 rupee to 4063 rupee per 100 kgs. Technically now Soyabean is getting support at 3922 and below same could see a test of 3894 level, and resistance is now likely to be seen at 3967, a move above could see prices testing 3984.

Trading Ideas:
--Soyabean trading range for the day is 3894-3984.
--Soyabean prices gained on supply concerns from Argentina, the world's third biggest bean producer, and on improved demand.
--Prices also seen supported by lower supply in domestic market as farmers are set to reduce the area given over to soybean by 10% this year.
--NCDEX accredited warehouses soyabean stocks dropped by 1097 tonnes to 37044 tonnes.
--At the Indore spot market in top producer MP, soybean gained 23 rupee to 4063 rupee per 100 kgs.

Courtesy: Kedia Commodities